In equation form, the equity valuation cash flow is defined as:
A)Net Income + Depreciation and Amortization Expense - Change in Net Operating Working Capital + Capital Expenditures + Net Debt Issues
B)Net Income + Depreciation and Amortization Expense + Change in Net Operating Working Capital + Capital Expenditures + Net Debt Issues
C)Net Income + Depreciation and Amortization Expense - Change in Net Operating Working Capital + Capital Expenditures - Net Debt Issues
D)Net Income + Depreciation and Amortization Expense - Change in Net Operating Working Capital - Capital Expenditures + Net Debt Issues

Question

Quizplus · Accepted Answer

The equity valuation cash flow is calculated by adjusting net income for non-cash expenses (like depreciation and amortization), changes in working capital, capital expenditures, and net debt issues.

In Equation Form, the Equity Valuation Cash Flow Is Defined